JK Tyre & Industries Ltd. (JK Tyre), a leading Indian tyre manufacturer, announced its audited financial results for the fiscal year 2024, reporting record-breaking sales and profits.
The company’s Board of Directors has recommended a dividend of INR 4.50 per equity share, including an interim dividend of INR 1.00 per share already paid, amounting to a 225% dividend for the financial year ended March 31, 2024.
Commenting on the impressive performance, Dr Raghupati Singhania, Chairman and Managing Director of JK Tyre, said, “JK Tyre achieved its highest-ever sales and profits during FY2024. Sales stood at INR 15,046 crore, marginally higher than the previous year, while EBIDTA increased by 59% to INR 2,122 crore, and PAT registered a remarkable two-fold increase, reaching INR 811 crore.”
Singhania attributed this exceptional performance to the company’s continued focus on product premiumisation, expanding market reach, and technology-enabled manufacturing and digitalisation across operations, which collectively achieved better efficiencies. Additionally, the strategic initiatives to fortify the company’s balance sheet through equity infusion yielded fruitful results, reinforcing its financial resilience.
The reported Profit after Tax of INR 811 crore is after making provisions of INR 106 crore for liability towards the “Extended Producer’s Responsibility” imposed by the Government of India on the tyre industry.
While exports remained flat during the year due to geopolitical disruptions and freight hikes, the company expects to improve its export volumes in the coming quarters.
JK Tyre’s subsidiaries, Cavendish Industries Ltd. (CIL) and JK Tornel, Mexico, continued to make significant contributions to the overall revenues and profitability of the company.
“We remain optimistic about the tyre demand outlook, led by robust infrastructure spending and buoyed economic activities, which will help us move towards our vision of becoming a green and trusted mobility partner,” Singhania added.
During FY24, JK Tyre raised INR 500 crore through a Qualified Institutional Placement (QIP), which helped deleverage its balance sheet.
The company reported consolidated revenues of INR 15,046 crore, EBIDTA of INR 2,122 crore (14.1% margin), Profit Before Tax of INR 1,211 crore, and Profit After Tax of INR 811 crore.